Cloud tops Asia-Pacific IT spending priority list

Cloud computing

Cloud tops Asia-Pacific IT spending priority list

Techtarget India Contributor

Cloud is the top investment priority for CIOs in the Asia-Pacific region, including India, with a third of CIOs enthusiastic adopters, according to research from Gartner. 

In contrast, cloud investment is only the fifth highest priority for global CIOs, signaling that the technology has yet to be established in the Asia-Pacific region.

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CIOs in the region reported 0.9% increases in IT budgets for 2014, exceeding the global average of 0.2%.

Just over 31% of Asia-Pacific CIOs say they have invested significantly in cloud, compared with 25% of global CIOs.

Organizations in the region use more public cloud services, such as platform as a service (PaaS) and infrastructure as a service (IaaS), than the global average, but less software as a service (SaaS) than the global average. 

Only 56% are using SaaS, compared with 72% globally. This implies that the majority of cloud services, in Asia-Pacific, are being consumed by the IT function rather than business units directly, said Gartner.

In earlier research, Gartner predicted that spending on cloud services in India would reach $4bn between 2013 and 2017. 

SaaS is expected to be the largest overall segment, followed by IaaS, with $76m to be spent in 2014, and business process as a service, where $73m will be invested in the next 12 months. IT spending on public cloud services in India is expected to reach $1.3bn in 2017.

The research also found that 35% of funding for these products and services comes from outside the IT budget.

Top IT investment priorities in Asia-Pacific, according to Gartner

  1. Cloud
  2. Mobile
  3. Business intelligence (BI)/analytics
  4. Enterprise resource planning (ERP)
  5. Infrastructure and datacenter
  6. Digitalization/digital marketing
  7. Networking, voice and data communications
  8. Industry-specific applications
  9. Security
  10. Legacy modernization
  11. Customer relationship management (CRM)
  12. Continuity